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Size, innovation and internationalization: a survival analysis of Italian firms

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Firms' survival is often seen as crucial for economic growth and competitiveness. This article focuses on business demography of Italian firms, using an original database, obtained by matching and merging to gain the intersection of three firm level datasets. This database allows us to simultaneously consider the effect of size, technology, trade, FDIs and innovation on firms' survival probability. We show that size and technological level positively affect the likelihood of survival. Internationalized firms show higher failure risk: on average competition is stronger in international markets, forcing firms to be more efficient. However, large internationalized firms are more likely to 'survive'. An Italian internationalized firm to be successful and to survive, should be high-tech, large and innovative.

Document Type: Research Article


Affiliations: 1: Dipartimento Scienze Economiche, Universita degli Studi di Firenze and Fondazione Masi, 50127 Firenze, Italy 2: Facolta di Economia, Dipartimento Scienze Economiche, Universita degli Studi di Firenze, 50127 Firenze, Italy 3: Dipartimento di Statistica 'G. Parenti', Universita degli Studi di Firenze, 50134 Firenze, Italy

Publication date: May 1, 2011

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